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RAYTHEON BENEFITS

bulletAnnual Pension Report for 2007(Added 1/1/09)
bulletRaytheon Health Benefits
bulletRaytheon Pension Benefits

SUMMARY ANNUAL REPORT
FOR RAYTHEON COMPANY PENSION PLAN FOR SALARIED EMPLOYEES

This is a summary of the annual report for the Raytheon Company Pension Plan for Salaried Employees, EIN 95-1778500, Plan No. 024, for the period January 1, 2007 through December 31, 2007. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). 

Basic Financial Statement 

Benefits under the plan are provided through a trust fund. Plan expenses were $399,186,841. These expenses included $11,041,102 in administrative expenses and $388,145,739 in benefits paid to participants and beneficiaries. A total of 91,468 persons, including 38,209 active participants, 21,451 employees in payment status, 28,511 terminated individuals who are due a future benefit, and 3,297 beneficiaries, were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits.

The value of plan assets, after subtracting liabilities of the plan, was $6,467,137,085 as of December 31, 2007, compared to $6,118,025,544 as of January 1, 2007. During the plan year the plan experienced an increase in its net assets of $349,111,541. This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $749,672,822 including employer contributions of $294,707,244, employee contributions of $2,892,909, earnings from investments of $431,274,782 and other income of $20,797,887. In addition, the plan had a net transfer-out of $1,374,440, including net transfers-in from other Raytheon sponsored plans of $3,342,266 and net transfers-out to other non-Raytheon sponsored_ plans of $4,716,706. 

Minimum Funding Standards 

An actuary's statement shows that enough money was contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA.

Your Rights To Additional Information 

You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report:

  1. an accountant's report;

  2.  financial information and information on payments to service providers;

  3.   information regarding any common or collective trusts, pooled separate

            accounts, master trusts or 103-12 investment entities in which the plan

            participates; and

    4. actuarial information regarding the funding of the plan.

To obtain a copy of the full annual report, or any part thereof, write or call the Raytheon Benefit Center, which provides these copies on behalf of the plan administrator, at P.O. Box 7825, Ocala, FL 34478-7825, telephone 1-800-358-1231. 

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. 

You also have the legally protected right to examine the annual report at the main office of the plan (Raytheon Company, Global Headquarters, Waltham Woods, 870 Winter Street, Waltham, MA 02451-1449) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

 

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Health Benefits

Our health benefits do not have the same protection as pension benefits which are partially protected by the Employee Retirement Income Security Act (ERISA).  We are dependent on the Company carrying out its contracts to provide medical benefits. We intend to continue to make sure that the Company is aware of member concerns about the high cost of health benefits and the dwindling level of coverage provided by the current retiree plan. There are employee groups that have different coverage or no coverage (as compared to the legacy Raytheon group) and our goal is to understand these situations and provide help and support and a voice for their concerns to the extent possible.

We believe the popularity of the various health related articles in past issues of our newsletters have resulted in more informed decision making by our fellow retirees. We intend to continue that service and in fact improve and expand it to cover more items of interest to retirees throughout our nation.

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Pension Benefits

The first priority of the Association is the preservation of the current level of pension benefits whether those benefits are provided through the legacy Raytheon Salaried or Hourly pension plans or through other pension plans. As with retiree health, we recognize that we do not have complete visibility on all pension plans. We will work to close that knowledge gap and serve all retirees of the Company. We intend to monitor any pension plan amendments and all other aspects of plan performance such as the plan investment experience and the Company’s funding policy that directly affect the security of the promised benefits.

The directors are aware of a recent plan amendment to the Raytheon Salaried Plan which effectively cuts off membership to new hires. In taking this step, Raytheon is following a troublesome national trend to cut back defined pension plan benefits. It is our goal to make the Company more thoughtful in dealing with the pension benefits of both active and retired employees. We will do that with your help by trying to stay out in front of Company initiatives and we must make sure that the Company knows that retirees are former employees and stakeholders in the Company just as shareholders are.

 You can help by informing the Association of any changes that come to your attention, e.g., notices posted on Company bulletin boards about plans. As an Association we will work to gather plan documents, financial, actuarial and other information about the Plans and the Company. We will employ actuaries and accountants, if appropriate, in order to make employees and retirees less helpless in the face of Company cost cutting.

Another goal is to make sure that pension benefits are being administered correctly and efficiently. Please keep the Association informed of problems. We cannot directly solve problems but we will try to point you in the right direction and we will keep a tally and make sure the Company is aware of common deficiencies.

Since its inception, the Association has worked to have the Company provide a cost of living increase in pension payments to retirees even if only to those retirees with the greatest need.

The Company has answered the request with a clear denial of any intent to consider a COLA. The Association will not give up on the goal of achieving some contribution to the financial relief of the most deserving of our fellow retirees. The optimum situation would be one where the Company is convinced that dealing with the plight of retirees in some way is in their interest. The Association will work to that end. As with other goals, the more information the Association has, the more it can do to formulate a plan of action. Please keep us informed of extreme situations.

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Last modified: 02/26/12